The National Development and Reform Commission has recently emphasized that it will systematically implement a package of incremental policies with various departments to boost the economy that is expected to show practical results within the year.
These policies the top economic policymaker announced include measures aimed at expanding domestic demand; increasing support for enterprises; promoting the stabilization of the real estate market; and boosting the capital market, among other things.
Since then, the market regulatory, industry and information technology, financial and judicial departments have introduced many specific measures. This can be seen as a response of these functional departments to the NDRC’s call. As a comprehensive coordination department, the NDRC aims to ensure that the consistency of the macroeconomic policy orientations of various departments work with synergy.
What the country needs now is an organic combination of countercyclical and cross-cyclical macroeconomic policies. It is necessary to pay attention to solving not only the current difficulties and problems, but also some medium- and long-term problems hindering the development of the economy.
It is the responsibility of the NDRC to optimize this policy structure, form an effective combination of policies, and ensure they are systematically implemented by various departments. This also highlights that in order to cope with the current downward pressure on the Chinese economy, various departments cannot act alone, and their actions must be coordinated.
Increasing the intensity of the countercyclical adjustment of macroeconomic policies and further expanding domestic demand have set the tone of expansionary policies. Promoting the real estate market to stop falling and stabilize and striving to boost the capital market show the Chinese government is seeking to stabilize asset prices.
Investors should see that in putting forward these goals, the government is determined to promote economic growth and consolidate the market’s confidence.
In fact, the NDRC also has some more comprehensive development-promoting tasks, such as the construction of new urbanization, standardization of enterprise-related law enforcement and supervision, optimization of the business environment, market-based allocation of factors and the construction of a unified national market, which involve institutional reform.
The market should maintain firm confidence in that in the short term. The authorities should focus on clearing the bottlenecks in policy implementation, and in the long term promote and implement various reforms to stabilize the economy and improve its structure.
21ST CENTURY BUSINESS HERALD